Medicare Savings Programs

Medicare Savings Programs can help lower your Medicare costs.

Starting January 1, 2026, there are two programs available to help low-income Vermonters. The programs are commonly called by their initials: QMB and QI-1. When you apply, the State of Vermont will see if you are eligible for one of the programs.

QMB

QMB pays for your monthly Medicare Part A and Part B premiums. QMB also pays for your deductibles, copayments and coinsurance for Medicare Parts A and B.

The 2026 maximum income level for QMB is 150% of the Federal Poverty Level (FPL):

• $1,995* per month for individuals
• $2,707* per month for couples

* The State of Vermont will disregard (not count) about half of your income if it is from a current job. This means that if you have a job and your monthly income is more than the limit for your household size (above), you could be eligible for the Medicare Savings Program. We recommend that you apply.  

QI-1

QI-1 pays for your Medicare Part B premium only. This program does not cover other out-of-pocket costs.

The 2026 maximum income level for QI-1 is 202% FPL:

• $2,687* per month for individuals
• $3,645* per month for couples

*The State of Vermont will disregard (not count) about half of your income if it is from a current job. This means that if you have a job and your monthly income is more than the limit for your household size (above), you could be eligible for the Medicare Savings Program. We recommend that you apply.

Note: You cannot have QI-1 and Medicaid at the same time.

Note about resources

There is no resource limit for the Medicare Savings Program. This means the State of Vermont will only look at your income and they will not look at your savings or property.

How to apply

There are two different applications for the Medicare Savings Program. You only need to fill out one application. Choose the application that fits your situation and the programs you want.

1. 201P application – Use this to apply for the Medicare Savings Program, VPharm and other state programs that lower prescription costs.

   The 201P application is shorter and easier to fill out, but you will not be screened for Medicaid. You can apply these ways:

   • ONLINE: Download and fill out the online 201P application.
     • Remember to check the box on the signature page and type your name at the red "X" below the box.
     • Use the Document Uploader to submit your application. (Click “Sign up” at the bottom of the webpage if you do not have an account.)  Select "healthcare" as the program.
   • MAIL: Print and mail the 201P application. Remember to sign it and include copies of any necessary documents.
   • PHONE: Call 1-800-250-8427. Remember to say: “I want to apply for the Medicare Savings Program by phone with the 201P application.”

2. 205ALLMED application – Use the Application Checklist to apply for Medicaid for Aged, Blind and Disabled (MABD), the Medicare Savings Program, and VPharm.

   The 205ALLMED application is longer and harder to fill out. It will take the state more time to decide if you are eligible for the programs.

   When to use the 205ALLMED

   If you think you might qualify for Medicaid for the Aged, Blind & Disabled (MABD), you should fill out the 205ALLMED application. To qualify for MABD, you must have very low income and very low resources (less than $2,000 if you are a household of 1 or less than $3,000 if you are a household of 2). Resources are things like money in your checking, savings, and retirement accounts.

After you apply

You should get a letter with a decision within 30 days of submitting your application.

If the letter says that you are not eligible for the Medicare Savings Program and you think that they made a mistake, you can appeal. See our page about appealing state decisions.

Questions

If you have questions, contact the Office of the Health Care Advocate (HCA) by filling out this form or calling 1-800-917-7787. There is no charge for our help.